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Accountability gaps limit state oversight of $694 million in grants to non-profit organizations : final report to the Joint Legislative Program Evaluation Oversight Committee.

Accountability gaps limit state oversight of $694 million in grants to non-profit organizations : final report to the Joint Legislative Program Evaluation Oversight Committee. - Page 24

Non- Profit Grants Oversight Policy Report No. 2009- 02
Page 20 of 28
Finding 5. Despite gaps in oversight, changes in legislation, technology,
and training have improved accountability for grants to non- profits.
In North Carolina, reporting and monitoring of state grant funds have
improved in recent years. Exhibit 10 shows the introduction of legislation
and technology over time. In 1989, the North Carolina General Assembly
first required grantees to submit financial statements to the Office of the
State Auditor through N. C. Gen. Stat. § 143- 6.1. Grantees were required
to submit a sworn accounting of receipts and expenditures to state
agencies in 1995 and activities and accomplishments information in 2003.
In 2004, N. C. Gen. Stat. § 143- 6.2 coordinated grants administration
among state agencies, such as the Office of State Budget and
Management and the Office of the State Auditor.
N. C. Gen. Stat. § 143- 6.1 and § 143- 6.2 were eventually replaced by
N. C. Gen. Stat. § 143C- 6- 23 in 2006 when the General Assembly decided
to increase non- profits’ accountability for their use of state funds. The
General Assembly established a requirement that grantees submit a
conflict of interest statement and required more coordinated grants
administration among state agencies.
Technology has improved the state’s ability to collect and report
information on grant expenditures. In February 2008, the Office of the
State Auditor launched the Grants Information Center, an online system that
enables grantor agencies to electronically enter grants award information
and enables grantees to electronically enter annual reporting
requirements. Although the system has presented challenges to grantors
and grantees alike, its introduction represented an important step in grants
oversight.
System enhancements will ultimately enable the Grants Information Center
to maintain Non- Compliance and Suspension of Funding lists in real time.
Besides providing agencies with the information they need to keep from
funding delinquent grantees, the Non- Compliance and Suspension of
Funding lists may reduce reporting delinquencies by virtue of the public
nature of appearing on the lists. 17
The goal behind the 2009 introduction of NC OpenBook was to bring more
transparency and accountability to state government and to those receiving
and expending state funds. NC OpenBook currently features a searchable
online database of all state grants and contracts in excess of $ 10,000,
including information such as the expected outcomes of each grant, specific
deliverables required, and the timeline for anticipated completion of the
work. The Office of State Budget and Management maintains NC
OpenBook and assumed operation of the Grants Information Center in
September 2009. With this consolidation of the Grants Information Center,
NC OpenBook, and the Suspension of Funding list functions, grantee
tracking and reporting rule enforcement are housed together for the first
time.
17 Jensen, H. ( 2002). Optimal degrees of transparency in monetary policymaking. Scandinavian Journal of Economics, 104, 399- 422.

Non- Profit Grants Oversight Policy Report No. 2009- 02
Page 20 of 28
Finding 5. Despite gaps in oversight, changes in legislation, technology,
and training have improved accountability for grants to non- profits.
In North Carolina, reporting and monitoring of state grant funds have
improved in recent years. Exhibit 10 shows the introduction of legislation
and technology over time. In 1989, the North Carolina General Assembly
first required grantees to submit financial statements to the Office of the
State Auditor through N. C. Gen. Stat. § 143- 6.1. Grantees were required
to submit a sworn accounting of receipts and expenditures to state
agencies in 1995 and activities and accomplishments information in 2003.
In 2004, N. C. Gen. Stat. § 143- 6.2 coordinated grants administration
among state agencies, such as the Office of State Budget and
Management and the Office of the State Auditor.
N. C. Gen. Stat. § 143- 6.1 and § 143- 6.2 were eventually replaced by
N. C. Gen. Stat. § 143C- 6- 23 in 2006 when the General Assembly decided
to increase non- profits’ accountability for their use of state funds. The
General Assembly established a requirement that grantees submit a
conflict of interest statement and required more coordinated grants
administration among state agencies.
Technology has improved the state’s ability to collect and report
information on grant expenditures. In February 2008, the Office of the
State Auditor launched the Grants Information Center, an online system that
enables grantor agencies to electronically enter grants award information
and enables grantees to electronically enter annual reporting
requirements. Although the system has presented challenges to grantors
and grantees alike, its introduction represented an important step in grants
oversight.
System enhancements will ultimately enable the Grants Information Center
to maintain Non- Compliance and Suspension of Funding lists in real time.
Besides providing agencies with the information they need to keep from
funding delinquent grantees, the Non- Compliance and Suspension of
Funding lists may reduce reporting delinquencies by virtue of the public
nature of appearing on the lists. 17
The goal behind the 2009 introduction of NC OpenBook was to bring more
transparency and accountability to state government and to those receiving
and expending state funds. NC OpenBook currently features a searchable
online database of all state grants and contracts in excess of $ 10,000,
including information such as the expected outcomes of each grant, specific
deliverables required, and the timeline for anticipated completion of the
work. The Office of State Budget and Management maintains NC
OpenBook and assumed operation of the Grants Information Center in
September 2009. With this consolidation of the Grants Information Center,
NC OpenBook, and the Suspension of Funding list functions, grantee
tracking and reporting rule enforcement are housed together for the first
time.
17 Jensen, H. ( 2002). Optimal degrees of transparency in monetary policymaking. Scandinavian Journal of Economics, 104, 399- 422.